Though his agent, Mino Raiola, had been in talks with the French club over a possible extension to the three-year deal he penned last year, Ibrahimovic, 31, told the media following Sunday's draw with Monaco that no agreement had been reached.

However, the club announced a one-year extension to the striker's contract on its official website on Tuesday, with the former AC Milan forward explaining the reason behind his decision.

"I cannot see greater ambition in Europe than that of Paris Saint-Germain," he said. "I wholeheartedly wish that Paris Saint-Germain be my last big club. This club is like me -- for us, the dream is never big enough."

L’Equipe claimed Ibrahimovic's salary would be upped from €13.8 million to an annual €15 million.

PSG president Nasser Al Khelaifi was quoted as saying: "The will of Zlatan Ibrahimovic, one of the best players in the world, to make his mark long-term on the history of Paris Saint-Germain sends out a very strong message. Together, we have the ambition to take the club to the summits of Europe."